Derivative strategy on Nifty by Motilal Oswal Securities

Derivative strategy on Nifty by Chandan Taparia of Motilal Oswal Securities:
 
STRATEGY: NIFTY (Long Strangle)
 
Buy 9300 CE  1 lot
Buy 9100 PE 1 lot
 
Rationale:
 
1.       Nifty Index is gyrating in the band of 9100-9300 in past few trading sessions.
 
2.       India VIX is trading near the low of 11.70. Sustain move above 12.5-13 could see volatility surging
 
3.       Considering onset of result season and geopolitical risk, Low risk Long Strangle is recommended
 
Reward / Target : Rs. 6000 (If market witnesses an either side move of more than 150-200 points with